CHANGES IN ACTUARIAL ASSUMPTIONS AND PAST SERVICE COSTS FULLY AND IMMEDIATELY AFFECT THE INCOME STATEMENT

5. - CFA 2018 LEVEL 2 FRA QUESTION BANK EMPLOYEE COMPENSATION QBANK
CFA 2018 LEVEL 2 FRA QUESTION BANK EMPLOYEE COMPENSATION QBANK
5. Analyst 1: Changes in actuarial assumptions and past service costs fully and immediately affect the income statement. Analyst 2: Changes in projected benefit obligation (PBO) and plan assets fully and immediately affect the balance sheet. A. Analyst 1 is correct. B. Analyst 2 is correct. C. Both analysts are correct. LO.f: Interpret pension plan note disclosures including cash flow related information.